Accounts Payable Automation: Impact Of Not Automating
Automated Payment System
Chartered Accountants and Financial Executives have long been aware of the measurable merits attainable through automation of the accounts payable process. However, going without the usage of such system may be incurring risks which far outweigh the cost of initiating streamlined approach. Embracing the right automation solution can serve to generate substantial savings in terms of both time and money, mitigate risks of manual errors, facilitate speed, and boost compliance standards.
The traditional accounts payable process usually requires significant manual coordination, paperwork, and more often than not, considerable amount of time spent in obtaining properly completed forms, and record keeping. Inherent within manual system are data integrity issues and increased risk of errors. This increases operational costs, reduces visibility, and weakens internal controls. Companies may find, as they grow and experience more costs, that they have unknowingly opened themselves up to serious risks.
Organizations without sound payment automation system are likely vulnerable to inefficient workflows. Slow response times and difficulty in coordinating not only further eat away at organizational costs, but can destroy company morale. Continuous overreliance on the manual process to avoid potential disruption often leads to an unwarranted loss in opportunity and productivity. Organizations characterized by frequent modifications and substantial volume of payments tend to suffer from foreign payment fraud and related financial losses.
Automated accounts payable solutions ensure mutual benefit to both business and customers. With automated solutions, processes become transparent, data-driven and consistent across the entire organization, enabling it to make well-informed decisions, link data for improved trend analysis, and ensure better general oversight. This not only expedit is the efficiency of workflow, but possesses superior error prevention capabilities when compared to manual processing.
In terms of compliance, customers will have immediate access to acknowledgements and confirmations of payments or maybe even have access to relevant and appropriate data regarding their payment transactions. By utilizing automation, the time taken to receive money can be significantly reduced due to the convenience attained through accommodating payment options such as credit cards or direct debit.
Organizations are encouraged to give priority to automated systems as failure to do so could see them incurring considerable losses in terms of productivity and efficiency. Further, going without an automated accounts payable system can lead to even greater losses in terms of tangible and intangible costs.
